Project A has an initial capital outlay of $3 million. It will be converted into an equivalent five-year annuity at a discount rate of 12% per year. Project B has an initial capital outlay of $6 million. It will be a 10-year annuity at the same discount rate as Project A. What are the annualized capital costs of each project?

Select one: a. Project A: $832,229; Project B: $1,664,458

b. Project A: $530,952; Project B: $1,664,458

c. Project A: $832,229; Project B: $1,061,905

d. Project A: $530,952; Project B: $1,061,905 \

If the nominal cost of capital is 16% per year and the expected rate of inflation is 5% per year, what is the real cost of capital? Select one: a. 21.8% b. 11.5% c. 11% d. 10.5% Nadir Corporation is considering the purchase of Acme Corporation. The owners of Acme Corporation are asking $75 million in cash. The managers of Nadir Corporation estimate that under their control, Acme Corporation will generate cash flows of $20 million per year for five years. The cash flows are net of taxes. The IRR of this investment is

Select one: a. 8.17% b. 10.42% c. 15.34% d. 20%

Coax Corporations is considering a project that will pay nothing for the first three years, $80,000 in the fourth year, $120,000 in the fifth year, and $160,000 in the sixth year. The appropriate discount rate is 8.8%, and the project requires an immediate investment of $150,000 if we accept the project. The NPV of this project is

Select one: a. $149,135. b. $124,939. c. $94,901. d. $82,263.

Please show step by step calculations and provide explanations for each.